Germany is slipping into a recession and they are slipping fast. Business climate index sees lowest value since May 2020, says Institute for Economic Research. Germany’s economic sentiment has decreased significantly in September and the country is “slipping into recession,” the Munich-based IFO Institute for Economic Research said recently.
Such a dramatic drop in activity among sectors that drive the German, and the European economy at large have made a recession imminent. OECD – Organization for Economic Cooperation and Development said that Germany, the largest economy of EU will fall into recession in 2023. They said recession in Germany will leave the whole EU in a bad position as Germany is the largest financial contributor to the EU’s financial budget. The weaker the Germany gets, the sicker the EU.
The IFO institute’s monthly confidence barometer, based on a survey of about 9,000 companies, slipped 4.3 points to 84.3 from the previous month.